Incidence theory and the shifting of protection across sectors: the South Asian experience

Abstract

Using the theoretical framework of a simple general equilibrium model, this paper examines whether strategies aimed at protecting or promoting manufacturing industries indirectly taxed the agricultural and service sectors. A panel data set consisting of five South Asian countries over a 26 year time period is employed in the analysis. Three different estimation procedures are used to account for factors that are country specific and those that are common to all countries. The results indicate that the agricultural sector indirectly felt the brunt of the net protection provided to manufactures due to the 'shifting of protection' across sectors. The service sector, on the other hand, indirectly benefited from the general equilibrium spillover effects.

Commodity currencies and currency commodities

“…estimates of the shift coefficient, and Clague and Greenaway (1994) for a subsequent survey. The methodology has been recently applied to Malawi (Zgovu, 2003), Spain 1879-1913(Pardos and Serrano-Sanz, 2002), Spain 1978-1993(Asensio and Pardos, 2002, South Asia (Panday, 2003) and the US for the late nineteenth century (Irwin, 2006), among others. Note that in the absence of any additional information, the value of 1 2 ω = has some attractions for the following reasons.…”

Commodity currencies and currency commodities

“…estimates of the shift coefficient, and Clague and Greenaway (1994) for a subsequent survey. The methodology has been recently applied to Malawi (Zgovu, 2003), Spain 1879-1913 (Pardos and Serrano-Sanz, 2002), Spain 1978-1993(Asensio and Pardos, 2002, South Asia (Panday, 2003) and the US for the late nineteenth century (Irwin, 2006), among others. Note that in the absence of any additional information, the value of 1 2 ω = has some attractions for the following reasons.…”